MCA-Nepal Inks Deal for New 400 kV Substation in Nawalparasi

In a significant move to enhance Nepal’s power infrastructure, Millennium Challenge Account Nepal (MCA-Nepal) has signed a contract with Linxon India Pvt. Ltd. for the construction of a new 400 kV substation in Nawalparasi district, Lumbini Province. The new Butwal Substation will utilize Gas Insulated Switchgear (GIS) technology and is slated for completion within 39 months.

The signing ceremony, held in Bhumahi, was graced by notable figures including Kul Man Ghising, Managing Director of Nepal Electricity Authority (NEA), and His Excellency Dean R. Thompson, U.S. Ambassador to Nepal, alongside local dignitaries.

Ambassador Thompson expressed the U.S. Government’s commitment to fulfilling Nepal’s energy requirements through this initiative. “The New Butwal Substation will not only enhance Nepal’s transmission capacity but also support household electricity needs, industrial growth, and cross-border electricity trading,” he remarked.

NEA’s Ghising highlighted the strategic importance of the new 400 kV substation, pointing out its role in augmenting the existing 220 kV facility to boost regional energy trade.

MCA-Nepal’s Executive Director, Khadga Bahadur Bisht, detailed the progress of the MCC Nepal Compact’s Electricity Transmission Project. “We are nearing completion of the procurement for two additional substations, continuing to build momentum in enhancing the national grid,” Bisht stated.

The project, jointly funded by the U.S. Government’s Millennium Challenge Corporation (MCC) and the Government of Nepal, also includes the construction of substations in Ratmate, Nuwakot, and Damauli, Tanahun. Selection of contractors for these substations is currently underway.

In a recent development, the MCA-Nepal Board has moved forward with the Nepal segment of the New Butwal-Gorakhpur power transmission line, a critical part of the cross-border power trade agreement with India, as per the decision in its March board meeting.

The new substation in Nawalparasi marks a pivotal advancement in Nepal’s efforts to enhance its electrical infrastructure and meet its burgeoning energy demands.